Monday, August 19, 2013

Market Summary --- 19th Aug 13

FTSE STI closed 3,173.33, down 24.20 points or -0.76% with a total volume of 2.47b and a total value of S$1.26b.  Total number of advance vs decline was 163 vs 294.  Of the 30 component index stocks, 9 closed positive, 1 unchanged and 20 in the red.  The top 5 gainer component stocks were :-

1. CityDev  +0.120
2. SingTel  +0.030
3. StarHub  +0.020
4. Genting SP  +0.015
5. CapMallsAsia  +0.010
5. GoldenAgr  +0.010
5. HKLand US$  +0.010
5. THBEV  +0.010

The top 5 loser component stocks were :-

1. JMH 400US$  -2.490
2. JSH 500US$  -1.840
3. Jardine C&C  -1.190
4. DBS  -0.260
5. UOB  -0.100

US markets closed negative again failing to holding on to gain.  Asian bourses were mixed for the day with Nikkei +0.79%, SSE +0.83% and HSI -0.24%.  STI unfortunately fall into the red with -0.76% with only 9 of the 30 index stocks posted gain.

The fear factor of possible US Fed tapering next month triggered the selling despite upbeat economic data from Japan whose export rose most since 2010.  That managed to reverse Nikkei from loss to close positive but not regional bourses.

STI suffered from selling pressure as obvious funds were selling off prior to the September US Fed FOMC in anticipation of tapering.  However, those call might not be correct at the end of the day.  Funds have to book some gain for their portfolio if not by the end of the year if their portfolio is under-performing they can forget about their bonus.  The more funds selling off, the better the opportunity is for long term investors to bargain hunt.  Do not look at when US Fed will taper, rather look at the detail and post tapering and that should be the more rational and wise strategy.

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